Accounting Controls Law and Legal Definition
Accounting controls refers to those methods and procedures intended for safeguarding assets, authorizing conduct and record of financial transactions, and ensuring the reliability of financial records. Generally, accounting controls are established on standards issued by the Ministry of Finance or the Supreme Audit Institution (SAI). As a result, accounting practices across all ministries conform to the national and international conventions.
An accounting control can take any of the following forms namely, policies for transactions, filing paperwork like invoices, processing of statements, or communication between departments involved in accounting. Limiting management's participation in the formulation of financial statements of a company is an accounting control.
